Norman Levine's Top Picks: BHP Group, Amadeus IT and Smith & Nephew
We have been positioning our portfolios to own stocks that we believe will benefit from the arrival of COVID-19 vaccines and the resultant economic recoveries around the world. Growth and momentum stocks have been the best stock performers for the past few years as interest rates declined to virtually zero and value and cyclical stocks have lagged badly. However, when economies begin to recover back to more normal levels, it will be those stocks left behind that we believe will be leading the markets. These stocks are vastly underweighted in major market indexes so you will probably be seeing indexes such as the S&P 500 and Nasdaq trail or even languish compared to the performance of the average stock. Active management will outperform passive management for the first time in a decade. It will be like the revenge of the nerds.